Porn Site Charges Lead Chinese Police to Cross-Border Crypto Ring

A mother’s discovery of unusual bank charges on her teenage son’s phone led police to dismantle a cross-border online pornography ring that raked in over 12 million yuan (US$1.7 million) from more than 100 million visits, China Central Television reported yesterday.

The woman found multiple late-night transactions on her son’s account. The boy, 15, had accessed a website called “Shy Colorful Comics,” which offered thousands of pornographic comics and stories, according to Ya’an police in Sichuan Province.

Investigators determined that visitors could view the first chapter free but had to pay for subsequent content. From January 2023 to April 2024, the site generated over 12 million yuan in revenue, with some users spending hundreds or even thousands of yuan, police said.

The probe revealed an elaborate money-laundering scheme using shell companies and cryptocurrency. Funds flowed through firms in Shanghai, Guangdong, Zhejiang and Tianjin before being converted to virtual currency and sent overseas.

Three men in their 20s, all surnamed Zhong, were identified as the domestic operations team. They registered four tech companies to receive payments and maintain the site.

Another man surnamed Tang and his wife received over 7 million yuan through their Shanghai firm before transferring most to Tang’s brother-in-law, surnamed Li, who converted the funds to crypto, police said.

Authorities arrested more than 30 people across 18 provinces.

Mingshan District People's Court in Ya’an has sentenced five defendants to jail terms ranging from one year three months to two years six months.

Police said the overseas mastermind remains at large and the investigation is ongoing.